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What Coinbase IPO Means For the Cryptocurrency Market?

BitForex Editor
Apr 23, 2021

It means Cryptocurrency, especially Bitcoin, will gain public notoriety as an exchange medium and compete with current FIAT currency for superiority including against the dollar.

For many Cryptocurrency enthusiasts having crypto coins listed publicly is a dream comes true. Thanks to Coinbase, customers around the world can buy into the company that helps them in buying Bitcoin. Coinbase is the largest crypto exchange in the US and the second-largest in the world after Binance and the singular platform for purchasing major coins, including ethereum and Dogecoin. On the 14th of April, it planned to go public, bypassing the usual IPO system to a direct listing method just like other major brands and companies in recent years.

So as Coinbase goes public, here is what you need to know about this action and the future of Cryptocurrency and Bitcoin.

What does Coinbase listing mean for the Cryptocurrency future?

Today many are still skeptics around Cryptocurrency, and with hundreds of coins listed, the volatility of the market is crystal clear. Coinbase becoming a public entity gives Cryptocurrency the stability and visibility it needs to compete with other currencies.

Secondly, it makes Cryptocurrency stable and sells digital mediums of exchange to the world and will enable blockchain technology and transaction. It also means less need to mine and the opportunity to finally create a world where Bitcoin and others are accepted as a secure payment means.

Today, Cryptocurrency has no intrinsic value but so do many other commodities on the market, yet investors flock around it. The concept and prospect of Cryptocurrency as the money of the future is likened to gold – but in this case, digital gold. Coinbase has set crypto in the right direction, and perhaps one day, it will be the future's currency.

What is Coinbase?

It is the largest Cryptocurrency direct exchange in the world, accessible in over 100 countries. It boasts of more than 56 million verified users who trust the platform to securely buy, invest, spend, save, trade, earn and use Cryptocurrency.

Founded in 2012 by Brain Armstrong in Silicon Valley, Coinbase is a fundamental piece to the success of Cryptocurrency, and pushing a narrative for the use of digital coins poised to shape the future. 

Due to lack of public representation, Crypto has been banned, disapproved, or disallowed, but that is about to change. As more of the world adopt crypto as a medium of exchange, it is only fair that Bitcoin and its counterpart get the representation they deserve in the world.

In its first quarter, the company declared a revenue growth of up to $1.8 billion and is going publicly by direct listing. While many frowned at this IPO launch method, it allows Coinbase to raise capital effortlessly, when the need arises and gives the market the privilege to determine the price rather than investment bankers or other financial money gurus.

What does direct listing mean?

Usually, IPOs are standard measures Wall Street uses to determine which private companies are strong enough to be listed publicly. However, going through IPO, companies need the expensive services of investment banks and bankers to help them advertise and sell their shares.

But that’s not all. These banks also get to place a price tag on the share on the market. By routing the direct path, Coinbase has cut off all investment banks bankers as the company has the assets and its owners are ready to convert their shares to stock for investors to buy into the company. Moreover, Coinbase is a financially stable company and is not looking to raise funds or additional capital.

What is the value of Coinbase as it goes public?

Yes, it has made its historic debut on the NASDAQ on the 14th of April with 114 million shares, according to SEC filing. And while there was no determined price, it began trading at $381 per share, a sharp increase from the $250 set by NASDAQ the day before. Although in true Cryptocurrency volatility, the coin swung as low as $310 and high to $429, it closed the market at $328.28 and a value of $85.7 billion – a company value 10 times more than its previous value.

How does Coinbase make money?

Currently, Coinbase does not charge users on its platform for storing or using your wallet. However, it earns a commission when you buy or sell cryptocurrencies. There are various fees attached to this action as follows.

The margin fee is a 0.5% charge for buying and selling, and the cost is determined according to the market conditions.

The Coinbase fee is a commission charge on all Cryptocurrency transactions and is dependent on the quantity of the transactions and your location. Coinbase also has a string of businesses, including Coinbase commerce which is an international payment platform. It owns a Coinbase Visa card and USDC, a stable crypto coin pegged at 1:1 of the US dollars.

Will Coinbase survive the market?

Yes, Coinbase will remain sustainable and bullish for a long time to come and being listed as a ticker COIN, it has drawn the attention of many to Cryptocurrency, and the next few days will determine its size and future. Is investing in Cryptocurrency a dream of yours but cannot go through the rigors of Cryptocurrency platforms? Coinbase is giving a digital opportunity to take a piece of the future today.

Furthermore, as inflation hits fiat currencies, devaluing it, many people, especially business individuals and companies, are looking for secure and stable ways to grow their income and protect their finances. Buying into Coinbase is like investing in other stock. Yes, the volatility of crypto is a risk, but digital currency is here to stay.

The future of Coinbase COIN will depend on how the company navigates the terrain and its ability to give consumers access to cryptocurrencies. So there is pressure for them to do well, and the entire crypto sphere is rooting for them.

So what are you waiting for? It is time to move the future of money closer to the people.

About BitForex:

BitForex is an exchange service platform that can be classified as one of the Top 20 cryptocurrency exchange services. It is focused on providing millions of users with a digital currency trading and investment tool that is not only safe but also professional and convenient. BitForex has a high customer-oriented culture and state-of-the-art financial technology.

BitForex is programmed in a way that it can quickly adapt to the changes of the Crypto market while introducing new features like margin trading, enhanced trading charts,  derivatives, and a host of others. The headquarter of BitForex is located in Hong Kong, while there are branch offices in countries like the United States, South Korea, and Singapore.

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